NER revealed that its sales revenue in Q3/24 should be in line with its expectations by virtue of rubber price staying high, while September saw more than 3000 tons of EUDR rubber exports to China, with the possibility of closing a deal with customers from Korea. The rubber export at the end of the year could be as much as 45,000 tons.
Mr. Chuwit Jungtanasomboon, CEO of North East Rubber Pcl. (SET: NER), revealed to “Kaohoon” that rubber sales during the first two months of Q3/2024 (July-August) have met expectations with rubber price remaining high.
Since the middle of 3Q24 is the monsoon season, rubber cultivation has decreased due to heavy rain, resulting in less rubber going into the market and making prices stay high, but a smaller rain could be seen as a good sign because rubber trees will yield more rubber under cold weather.
Right now the company is fully booked for the entirety of 2024 with low cost on raw rubber making the price gap high, but newer orders will use newly bought rubber that are more expensive, which should bring the price gap down to equilibrium.
Prediction for 4Q24 saw continuous growth toward the 2024 goal of THB 25 billion in revenue, even though there is a pressure from sales dropping 10% from 500,000 tons to 440,000 tons owing to lower supply. September of this year saw the company exporting 3,000 tons of rubber under European Union Deforestation Regulation (EUDR) compliant to Chinese customers, and are under the process of closing the deal with a Korean client with the possibility of shipping starting in 2024Q4. EUDR rubber initial shipment is expected to be at 45,000 tons within 2024, and could grow further in 2025.
